iCharts Discussions

[NORBE_1958]

MJ as said if on 8th if it gapup of course the filter will be bigger20 but what if the PH is cracked only could we use SF 7

[musicjunkie]

Yes Norbe, Regular filter for PH and slightly larger for Gap day reversals.

Amit --> Please check Nifty Futures chart. The chart you posted is of Nifty spot. We cannot trade spot, always we are referring to futures.

SH--> Not at all my friend, In fact your questions are very good and I enjoy discussing my views on it with you .
Right So the EOD reversal is basically ONLY on fresh entries. We don't do this everyday, just the day we reverse we want price to close in our favor.
Lets Say we are short, PH forms, Price goes above it....through our filter and we are long again. Later in the same day near closing, we see that price has now come back and is trading far away from the PH. We revert back to shorts as the trend clearly hasn't changed.
Same for Longs, say we make a PL during the day at say 3600, it breaks and wea re short...near closing price is trading ABOVE PL, say at 3640, we will switch back to longs.

So thats the EOD reversal, works sometimes and sometimes there are those days where it doesn't....

MJ

[amitrajangulati]

Thanks! mj, saikat

Regards,
Amit

[saikat]

MJ,

Thanks...
My understanding of EOD reversal also got totally cleared from that SH's stupid question. Stupid questions are good for long term ledgers....

It is difficult to find a great teacher and trader in the form of same human being... MJ - I think you are one of those rare fews ....

Regards,

Saikat

[musicjunkie]

[saikat]

Has the system went LONG above last day's 3 PM high but reversed to Short again?? At the EOD as per EOD reversal rule??

Saikat

[ConMan]

Dear MJ

I have just read thru this entire thread and planning to start my trade from tomorrow...The issue is with the starting pivot...I am not able to figure out where should I start my short/long positions...It would be nice if you can help me and other non starters with the entry level of new trade tomorrow...Thanks in advance

Anand Rathi

[ConMan]

Dear MJ

I tried backtesting on my understanding for last 3 days data....I would have closed yesterdays trade with 2 positions....in the chart below I have mentioned the entire detail....kindly confirm if I am right...

[musicjunkie]

Hi bullishanand,

Back from my 5 day holiday , Sorry for the late reply.....

Couldn't quite get your chart. Below is the recent trade I had taken in nifty.
Couple questions as well anand,
Do you agree with the chart?
Do yuou havea proper MM in place?
I hope you know that this is a position system and we dont close our positions, we reverse, always in trade setup. If everything is clear, then Go ahead, good luck on your journey.
If there is doubt, pace yourself, slow down and understand the small jiggery-pokeree things that we do with the system before putting up a real trade.

Warm Regards,
MJ

[ConMan]

Dear MJ

Thank You for the reply. I am a newbie and definately learning from experts...yes I do want to confirm that MM is in place....about understanding of charts I think I am improving on a daily basis...

On the chart that you have attached can you please confirm
1. why is the TSL of 9th April chart not moved to 10am candle....I thought there was a PL in 10am candle which got hit as well.

2. adding positions is on PH+filter or just filter?

3. Your charts and mine are matching to a large extent...except on additions & SL....

Please clarify and help me join this wonderful journey...

[musicjunkie]

Great Going anand, good question.
You see we had a WRB the previous day so stops moved to 3247-Filter. Then we opened higher and made a pivot low, which was the second bar of the day.....
Now the question is why not move stops there? well, that's because we dont have newer highs. We NEED new highs to move stops to a pivot low.

EXEPTION: We get a sideways move and we can move stops to the pivot, we did this on the 13th after we had 11 sideway bars.

Filter is basically space. If your filter is 10 and pivot high at 3800, buy at 3800+10....or 15 whatever your filter is...

Same for adds, smaller filter compared to reversal filter though.

Regards,
MJ-

[ConMan]

Dear MJ

Thank You again. You are really a good guide for newbies like me....

I have a learnt a new thing today that we need new High to move stop lossed to PL. But again .... The first bar made a new high and touched 3400 right? So is it not qualified? Is there any reason why we are not considering?

Sorry bothering you again and again....

Anand Rathi

[musicjunkie]

Not bothering me at all.....
Think of it like this, Pivot then new highs...then we move stops...

MJ-

[ConMan]

Dear MJ

What do you mean by PIVOT here....doesn't mean the theory of fingers....does it mean looking for PH/PL after 2 bars???

Let me take a guess at your trade today....we are thrown out of trade as our earlier position hits SL in the morning & reverses our position to short...as it is not able to break lows of the Breakout bar we yet again reverse our position to LONG at high of Breakout bar + filter (in this case say:3372.5)....we add another position at 3447 (PH+20)....and close the trade with TSL 3445....

If this is right then I would be really really glad....please do correct if I am wrong...also do answer my 1 question...

THank YOU

[musicjunkie]

No anand, wait for the frist 5 min bar then put in stops....

Gap down, wait till 10 am, then stops at 5min low - Filter...So did nothing today.. No Trade...we are still long doing nothing.

MJ-